CONTRACT ISSUE

KMWL1

I’m in the process of moving, downsizing in fact. Back in August I gave notice to my then third estate agent, with whom I was with for a little over a year. Wanting to try another. They, the agent, were unhappy, to say the least. I signed with the new agent who found me a buyer without pressure for me to find somewhere suitable. Foolishly I let slip this info to the previous agent during the notice period. Now, according to them, I am in breach of contract. The agent is now demanding over £13,000 incl. vat. My house is under offer, which I accepted. However finding a new house is proving more of a challenge then I hoped for. The question is, does the agent have a right to their claim? Is there a legal way to avoid this hefty fine? Which makes buying something somewhat impossible for me

user1977

It isn't a "fine".

But we'd need to see your contract to figure out whether it's due.

sheenas

As above. The contract I assume would have an exclusive period stated which is also know as the retention period or post-contract liability period. 

eddddy

KMWL1 said:

I signed with the new agent who found me a buyer without pressure for me to find somewhere suitable. Foolishly I let slip this info to the previous agent during the notice period. Now, according to them, I am in breach of contract. The agent is now demanding over £13,000 incl. vat. 

It sounds like you're saying that your contract hadn't ended with the previous estate agent - but you instructed another estate agent, and the new agent introduced a buyer before the previous estate agent's contract had ended.

If that's correct and you had either a "Sole Agency" or "Sole Selling Rights" contract with the previous estate agent, then...

• You are almost certainly in breach of contract - a Sole Agency or Sole Selling Rights contract will always say that you cannot instruct another agent during the "Sole" (exclusive) Period.

• You will almost certainly owe the previous estate agent their full fee (£13k?) on completion - because another agent introduced a buyer during the previous agent's "Sole" (exclusive) period

When you signed up with the new estate agent, didn't the new agent ask you if you were under contract with another agent? And warn you that you would be in breach of contract, and you might have to pay double fees?

If the new estate agent is a member of the Property Ombudsman scheme, it's mandatory for the new estate agent to ask you about your previous agent, and warn you about double fees.

(Or did the new estate agent ask you about this, and you fibbed?)


The only glimmer of hope might be if the new estate agent is a member of the Property Ombudsman scheme, and they failed to ask you the right questions, and to give you warnings about double fees.

saajan_12

KMWL1 said:

CONTRACT ISSUE
I’m in the process of moving, downsizing in fact. Back in August I gave notice to my then third estate agent, with whom I was with for a little over a year. Wanting to try another. They, the agent, were unhappy, to say the least. I signed with the new agent who found me a buyer without pressure for me to find somewhere suitable. Foolishly I let slip this info to the previous agent during the notice period. Now, according to them, I am in breach of contract. The agent is now demanding over £13,000 incl. vat. My house is under offer, which I accepted. However finding a new house is proving more of a challenge then I hoped for. The question is, does the agent have a right to their claim? Is there a legal way to avoid this hefty fine? Which makes buying something somewhat impossible for me

We can't exactly advise on a contract issue without the key terms of said contract. Please quote. 

GDB2222

KMWL1 said:

I’m in the process of moving, downsizing in fact. Back in August I gave notice to my then third estate agent, with whom I was with for a little over a year. Wanting to try another. They, the agent, were unhappy, to say the least. I signed with the new agent who found me a buyer without pressure for me to find somewhere suitable. Foolishly I let slip this info to the previous agent during the notice period. Now, according to them, I am in breach of contract. The agent is now demanding over £13,000 incl. vat. My house is under offer, which I accepted. However finding a new house is proving more of a challenge then I hoped for. The question is, does the agent have a right to their claim? Is there a legal way to avoid this hefty fine? Which makes buying something somewhat impossible for me

You didn’t foolishly let this slip to your old agent. You wisely told them in advance of selling your house. Far better to find out about it now than after you have exchanged contracts.